Re-imagining Relevance: A Response to Starkey and Madan

Starkey and Madan (2001) propose that changing conditions of knowledge production mean that business schools face an increasing relevance gap which, if they do not respond, will be filled by management consultants and corporate universities. In this response, I question the core assumptions of their analysis, suggesting that they misunderstand both the historical role and present practices of universities and business schools. In particular they fail to understand the complexities of knowledge production, its relationship to practice and the importance of 'independence' which is the unique contribution that universities make to society. I argue that their proposal to bridge the relevance gap would, if adopted, have the effect of leaving business schools with no defensible social role. Thus, ironically, their 'solution' to the challenges facing business schools would in fact exacerbate the problems they currently face.     

Production Competence and Business Strategy: Do They Affect Business Performance?

The purpose of this article is threefold. First, a comprehensive measure of production competence that assesses the level of support that manufacturing provides for the strategic objectives of a firm is developed. Second, hypotheses relating production competence to several financial measures of business performance are tested using data from a large sample of firms (n=65) in the furniture industry. Third, the impact of business strategy both directly on performance and as a moderating variable in relation to production competence is analyzed. The results of the study suggest that production competence may have more of an effect on business performance for certain strategies than for others.     

高级管理人员变更、股权特征与盈余管理——来自中国上市公司的经验证据

本文以2003-2006年我国A股上市公司为研究样本,检验公司发生高级管理人员变更时的盈余管理行为。研究结果表明,发生高级管理层变更的公司,高级管理人员变更的当年存在较严重的调减利润的盈余管理行为;此外,对于发生了高级管理人员变更的公司,如果其控股股东是地方和中央政府部门所属国企或中央直属国企,则其调减利润的盈余管理行为可以得到一定程度的抑制;大股东的制衡度越大,公司盈余管理的幅度也将越小。研究结果还显示,当发生高级管理人员变更时,上述因素对公司调增利润的盈余管理行为基本没有影响。     

Re-Focusing the Business School Agenda

This commentary agrees with Starkey and Madan (2001) that business schools must incorporate Mode 2 production methods if they are to be significant knowledge producers in the future. We reinforce their specific suggestions about how that might be accomplished by focusing on learning from early Mode 2 attempts, promoting practitioner research, seeking business co-sponsorship and sheltering some Mode 1 practices and values, including longitudinal reflective research and information storage. We also argue, however, that business schools must go beyond such tasks, difficult and expensive though they are. The way business and business schools currently operate, and are being encouraged to operate, does not address the broader issues of human relevance that concern James March (1998) and others. The gap here is a risk for business and society, and appears to require new, Mode 3, methods of knowledge production.     

Information Systems Management Issues: Reporting and Relevance*

Reports of key information systems issues have been published over the last two decades in many journals. Leading IS journals (e.g., MIS Quarterly, Information & Management, among others) have published key IS management issue reports every three or four years over the last 15 years, and will probably continue to provide such reports in the future. Although these reports claim to provide decisional guidance to practitioners, researchers, consultants, etc., the authors in their experience have noted concerns about their usefulness. While not questioning the validity of the methods and analysis conducted in these studies, we address two important questions in this article: the manner of reporting of the key issue results (which might be misleading), and the relevance of the results (are they providing what they intended to?). We hope that our discussion will provide new perspectives in making resource allocation decisions to both readers and authors of key issue articles.     

Imitate Others? Not if We Have the Chance: Competitive Differentiation in Medical Malpractice Insurers' Pricing Decisions under Uncertainty

Several perspectives assert that organizations facing uncertainty tend to imitate other organizations' actions. While one might therefore expect to see great homogeneity across fields characterized by uncertainty, it is surprising that this homogeneity has not been observed more frequently in practice. Research investigating this puzzle has typically focused on the role played by organizational characteristics or the information organizations possess about their environments. Instead, this study turns attention to the information others possess about the organization. To that end, I disaggregate organizational uncertainty into the uncertainty facing decision makers and the uncertainty faced by others about what those decision makers might ultimately do, providing a more fine grained analysis of uncertainty and its impact on competitive action than typically offered in this literature. I suggest that uncertainty in competitors' evaluations of the organization provides an opportunity for the organization to differentiate itself rather than imitate others. I also suggest that this effect is stronger than the effects of the uncertainty facing the decision makers themselves. Related hypotheses are tested on a panel of medical malpractice insurance providers. The study's perspective generates unique predictions regarding imitation and differentiation in this industry and across other contexts featuring both uncertainty and competition.     

Organizational disidentification and change-oriented citizenship behavior

This study proposes that the extent to which employees have disidentified with their organization might reduce the likelihood that they undertake change-oriented citizenship behavior, though this negative link might be buffered by employees’ access to two personal resources (self-enhancement motive and benevolence) and two contextual resources (citizenship climate and job involvement). To test these theoretical predictions, the study gathers survey data from employees in the telecommunications sector in Canada. The results show that prior organizational disidentification curtails voluntary efforts to improve current organizational practices, but this effect is weaker when employees (1) find it important to make a good impression on others, (2) are benevolent toward others, (3) perceive that their organization encourages voluntary efforts, and (4) are highly involved with their jobs. These four factors accordingly diminish the risk that the extent to which employees have cognitively separated from their employer escalates into a reluctance to add to organizational effectiveness on a voluntary basis.     

The Effects of Task Information and Outcome Feedback on Individuals' Insight into Their Decision Models

When making business decisions, people generally receive some form of guidance. Often, this guidance might be in the form of instructions about which inputs to the decision are most important. Alternatively, it might be outcome feedback concerning the appropriateness of their decisions. When people receive guidance in making difficult judgments, it is important that they do not confuse this guidance with insight into their own decision models. This study examined whether people confuse their actual decision model with task information and outcome feedback. Subjects predicted the likelihood that various hypothetical companies would experience financial distress and then reported the decision models they believed they had used. Their reported models were compared with their actual models as estimated by a regression of the subjects' predictions on the inputs to their decisions. In a 2times2 factorial design, some subjects were provided with task information regarding the relative importance of each input to their decisions while others were not. Some subjects were provided with outcome feedback regarding the quality of their decisions while others were not. The subjects tended to confuse the task information and outcome feedback with their actual decision models. Implications for the results are discussed.     

The McDonaldization of Higher Education: A Fable

Given the promise of technology,and the proliferation of competition, the very essence of the academic enterprise is poised for dramatic change. Higher education might undergo an evolution similar to that of other industries — through mergers and acquisitions, standardization, and ultimately consolidation into a few leading ‘brand name’companies. If the future means only a few academic institutions will survive, what will be nature of those schools, their culture, and the role of their faculty? This fable not only speculates on the brave new world that might emerge, but suggests the underlying values that might determine whether this new academic system should be embraced or resisted.     

A Comprehensive Model for Measuring the Potential Impact of Information Technology on Organizational Strategic Variables*

The existing literature on the impact of information technology (IT) does not include rigorous theory building or empirical studies. This research seems to be the first comprehensive investigation towards the development of an empirically validated comprehensive model for understanding the potential impact of IT on organizational strategic variables. More specifically, organizational and industrial variables that appeared to be affected by IT are identified, measured, and operationalized in the form of a comprehensive model. This study is based on structured interviews with a carefully selected sample of 31 strategic managers who had experience using IT for strategic decisions. In addition, the variables included in the model are well grounded in the information systems literature. The variables are then empirically validated and their reliabilities critically tested. A comprehensive model is derived from these validated variables. The model is a first step towards measuring the overall potential impact of IT on an organization. The model can also be used to gauge IT's potential impact on individual strategic variables. A set of hypotheses is also presented for future research. The hypotheses primarily relate to the impact of IT on organizational strategic performance. The model provides an empirically validated foundation for testing of such hypotheses.     

Knowledge Management Using Information Technology: Determinants of Short‐Term Impact on Firm Value*

The importance of knowledge management (KM) processes for organizational performance is now well recognized. Seeking to better understand the short‐term impact of KM on firm value, this article focuses on public announcements of information technology (IT)‐based KM efforts, and uses cumulative abnormal return (CAR) associated with an announcement as the dependent variable. This article employs a contingency approach, arguing that the KM announcement would have a positive short‐term impact on firm value in some conditions but not in others. Thus, it pursues the following research question: What are the effects of contextual factors on the CAR associated with the announcement of an IT‐based KM effort? Specific hypotheses are proposed based on information‐processing theory, organizational learning theory, the knowledge‐based theory of the firm, and the theory of knowledge creation. These hypotheses link CARs to alignment between industry innovativeness and the KM process, alignment between firm efficiency and the KM process, firm‐specific instability, and firm diversification. The empirical study utilizes secondary data on 89 KM announcements from 1995 to 2002. The results largely support the hypotheses. Overall, this article provides empirical support for the theory‐based arguments, and helps develop a contingency framework of the effectiveness of KM efforts.     

A SIMULATION ANALYSIS OF THE JAPANESE JUST-IN-TIME TECHNIQUE (WITH KANBANS) FOR A MULTILINE,MULTISTAGE PRODUCTION SYSTEM

The Japanese “just-in-time with kanban” technique reduces in-process inventory to absolute minimal levels, in concert with the Japanese belief that inventory is an unnecessary evil. Due to the success of Japanese firms that employ this type of system, American firms would like to import this technique and emulate Japanese successes. But this Japanese success may be attributable not only to the just-in-time with kanban technique but also to the production environment in which the technique is employed. This paper simulates the just-in-time with kanban technique for a multiline, multistage production system in order to determine its adaptability to an American production environment that might include such characteristics as variable processing times, variable master production scheduling, and imbalances between production stages. The results have practical implications for those firms considering adoption of the Japanese technique.     

Unfair,uncertain, and unwilling: How decision-making unfairness and unclear job tasks reduce problem-focused voice behavior,unless there is task conflict

In an attempt to expand extant literature devoted to employees' voice behavior, the current research unpacks the connection between their experience of procedural unfairness, such that organizational decision-making lacks transparency, and their problem-focused voice behavior. In this link, the authors predict that job ambiguity functions as a mediator, and coworker task conflict takes a moderating role. Survey data, collected among employees in a large Portuguese retail organization, affirm that perceptions about unfair decision policies can curtail employees’ propensities to raise their voice about organizational failures, because they develop the belief that their employer is failing to provide sufficient job-related information. If they can exchange conflicting viewpoints with others though, this detrimental process might not proceed. Organizations should take care to avoid accusations of unclear job roles, because they create a route by which frustrations about opaque decision-making can escalate into employee complacency; they also should encourage productive idea clashes within their ranks to help block that route.     

Introduction to the Symposium: Communities,Organizations, and Restorative Justice Reform

Restorative justice, in treating organizations as communities, and viewing them as both cause and solution to problems of crime, harm and conflict, provides its revolutionary insights and groundbreaking efforts to transform and localize intervention in response to these problems. The contributions to this special issue focus on restorative justice as a way of addressing crime and crime-related concerns to the greatest extent possible within such community organizational contexts (i.e., workplaces, schools, universities, and residential programs for delinquents). The authors demonstrate how restorative practices have implications for community building and organizational reform based generally on a learning theory of cultural change.     

Examining the Impact of Speed of Quality Improvement on Quality-Related Costs

The Fine (1986) quality-based learning curve model is extended to include the consideration of speed of quality improvement. The model demonstrates that under different circumstances rapid quality improvement effects are either beneficial or detrimental to improvement in quality-related costs. Hypotheses are developed from the analysis of this speed of quality improvement model. The hypotheses are tested in an automotive parts manufacturing company with five similar plants. Results show that with an increase in the speed of quality improvement, the rate of growth in prevention and appraisal costs decrease and the rate of growth in failure costs are unaffected. Rapid speed of quality improvement does yield lesser decreases in failure costs than slower, steadier improvement. However, rapid speed of quality improvement does not yield the predicted lesser decrease in prevention and appraisal costs than slower, steadier improvement. Rapid speed of quality improvement might or might not benefit the organization, perhaps an explanation for some Total Quality Management (TQM) failures. A more deliberate, learning organization is suggested from this research.     

An Empirical Study of the Effect of Knowledge Management Processes at Individual,Group, and Organizational Levels*

To enhance our understanding of knowledge management, this paper focuses on a specific question: How do knowledge management processes influence perceived knowledge management effectiveness? Prior literature is used to develop the research model, including hypotheses about the effects of four knowledge management processes (internalization, externalization, socialization, and combination) on perceived individual‐level, group‐level, and organizational‐level knowledge management effectiveness. The study was conducted at the John F. Kennedy Space Center of the National Aeronautics and Space Administration using a survey of 159 individuals and two rounds of personal interviews. Structural equation modeling was performed to test measurement and structural models using the survey data. The emergent model suggests that internalization and externalization impact perceived effectiveness of individual‐level knowledge management. Socialization and combination influence perceived effectiveness of knowledge management at group and organizational levels, respectively. The results also support the expected upward impact in perceived effectiveness of knowledge management, from individual to group level, as well as from group level to organizational level. The study's limitations and implications for practice and future research are described.     

Compensation Schemes,Skill Level,and Task Performance: An Experimental Examination*

The effect of budget-based incentive compensation schemes is a fundamental issue in developing and implementing organizational control systems. This study investigates the effect of alternative compensation schemes on performance and satisfaction. A theoretical model outlining the primary relationships is formulated and related hypotheses specified. The hypotheses reflect an integration of agency theory and organization behavior research. Across-group and within-group effects are investigated using both single-period and multiperiod analyses. A laboratory study involving 40 subjects is undertaken and the findings provide insights into the individual and group effects of alternative compensation schemes and the dynamics of changing Compensation schemes on productivity and satisfaction. Specifically, a relationship is found between compensation schemes and performance. The effect on performance is independent of the compensation scheme's perceived fairness. Satisfaction is a function of the congruence between the preferred scheme and the implemented scheme.     

Business Education: Real Time or Semester Time?

Both the context and content of management education are changing as new providers compete for market share. As education goes increasingly online and offcampus, many traditional universities will feel the effects of consolidation within their own ranks. Business schools will face additional pressure as corporate universities and Internet universities offer an economical and effective means of professional education. Unless MBA programs seize opportunities for creative collaboration, today’s potential partners will become tomorrow’s predators. This revised version was published online in July 2006 with corrections to the Cover Date.     

Exploring the use of virtues to facilitate identity construction among management students

This paper explores the challenges and opportunities facing educators who wish to facilitate management students’ identity construction as a means to foster their students’ emergent professional identities and post-graduate career attainments. We look to medical and law schools’ recent advancements, alongside their traditional dissemination of knowledge and technical skills, in better aligning students’ developing identities and related behaviors with respective professional ideals. Drawing on insights from these professional schools, we examine whether the concept of “professional virtues” that’s proven valuable in these contexts might also be used to facilitate students’ professional identity construction within management education.